Kiama Council's handling of community and commercial leases is set to take centre stage at the upcoming council meeting, with Councillor Melissa Matters raising questions about how Council manages its property portfolio. The discussion is expected to delve into issues of transparency, revenue generation, and compliance with federal competition laws, all of which are under increased scrutiny as the Council grapples with financial challenges.

At the heart of the debate is Council’s draft Property Plan, a comprehensive strategy for managing its leased assets, due for public exhibition in February 2025. This plan aims to address underperforming assets, standardise lease agreements, and ensure compliance with the Commonwealth Competition Policy Reform Act 1995. It will also introduce a new Leasing, Licensing, and Rental Rebate Policy, categorising tenants and applying fair rental terms accordingly.

Cr Matters has emphasised that her motion is not directed at small community groups renting Council facilities for local activities. "I want to make it very clear that this review is not about increasing rents for community organisations or creating fear about their future. These groups are integral to our community, and their affordable access to facilities will remain a priority," she said.

Instead, the motion seeks greater transparency and equity, particularly in cases where commercial activities generate revenue from Council-owned assets. Examples include long-term lease arrangements where subletting may occur without adequate return to Council or clarity about the broader benefits for the community.

Cr Matters highlighted the importance of reviewing historical leases, some of which have been in place for decades, to ensure they align with current standards. "The world has changed. Council has financial responsibilities to its community, and we need to understand what we’re gaining—or losing—from these arrangements," she said.

Proposed measures include:

• Reviewing all leases to identify terms that may no longer serve Council’s financial or community goals.
• Implementing processes for updating rental valuations when commercial uses are introduced.
• Ensuring fair and consistent lease conditions, especially for commercial tenants.

With financial oversight from the state government, the Council faces significant pressure to demonstrate sound asset management. The CEO has reiterated the importance of balancing financial sustainability with community service. "While ensuring our facilities serve the community effectively, Council must also receive an appropriate return on its leasing arrangements," the CEO stated.

This motion, and the upcoming debate around the draft Property Plan, marks a pivotal moment for Kiama Council. While transparency and equity are the guiding principles, Cr Matters’ motion reflects a commitment to ensuring all leases serve both the community and Council’s financial interests fairly.

For commercial tenants and sub-leases, the outcome of this review could mean significant changes, with a push toward updated agreements reflecting market standards. For small community groups, Cr Matters’ assurance of continued support is intended to alleviate concerns about affordability and access.

As Kiama grapples with financial sustainability, this review sets the stage for a broader conversation about how Council manages its dual role as a community partner and fiscal steward. The decisions made in this process will likely influence Council’s future asset management and its relationships with tenants for years to come.